To streamline recurring digital payments, the Reserve Bank of India has consolidated all existing circulars and issued the Digital Payments – E-mandate Framework, 2026. The directions, issued under the Payment and Settlement Systems (PSS) Act, 2007, come into effect immediately.
Wide applicability across payment modes
The framework will apply to all payment system providers and participants handling recurring transactions, both domestic and cross-border, across cards, prepaid payment instruments (PPI), and UPI.
Stronger customer control in mandate registration
Customers opting for e-mandates will be required to complete a one-time registration process with Additional Factor of Authentication (AFA). Each mandate will carry a defined validity period, with users allowed to modify or withdraw it at any time.
The framework also enables both fixed and variable recurring payments. For variable mandates, customers can set a cap on the maximum transaction value, ensuring tighter control over automated debits.
Flexibility in alerts and mandate management
Customers will have the flexibility to choose how they receive pre-transaction alerts, via SMS, email, or other available modes, and can change these preferences anytime. Any modification or withdrawal of mandates will require AFA validation.
Clear rules for recurring transactions
The first transaction under an e-mandate will mandatorily require AFA validation, which can be combined with the registration process. Subsequent transactions will follow the defined framework, without being subject to additional customer-set limits.
Mandatory pre-transaction alerts
Issuers must send a pre-transaction notification at least 24 hours before the debit. The alert will include key details such as merchant name, transaction amount, date and time of debit, and mandate reference. Customers will also have the option to opt out of a specific transaction or cancel the mandate altogether, with AFA validation.
However, such pre-transaction alerts will not be required for auto-replenishment of FASTag and National Common Mobility Card (NCMC) balances.
Post-transaction transparency enhanced
A post-transaction notification will also be mandatory, detailing transaction specifics along with grievance redressal information, enhancing transparency and customer awareness.
Higher thresholds for seamless payments
The framework allows recurring transactions up to ₹15,000 without AFA. For select categories such as insurance premiums, mutual fund subscriptions, and credit card bill payments, this limit has been raised to ₹1 lakh per transaction, enabling smoother high-value recurring payments.
Robust grievance redressal and zero charges
Issuers are required to establish a robust dispute resolution mechanism, with RBI’s existing customer liability guidelines for unauthorised transactions extended to e-mandates as well. Importantly, customers will not be charged for availing the e-mandate facility.
Compliance and ecosystem alignment
The directions also allow mapping of existing mandates to reissued cards, ensuring continuity for users. Acquirers have been tasked with ensuring that merchants comply with the new framework, strengthening overall ecosystem discipline.
Towards a safer recurring payments ecosystem
With enhanced safeguards, flexibility, and higher transaction limits, the new framework is set to improve user confidence while supporting the rapid growth of India’s digital payments ecosystem.